The Pulse of the Property Market
As the property market continues to evolve and adapt to external factors, staying informed about the latest updates is crucial for both buyers and sellers.
Rightmove's June House Price Index provides valuable insights into the current state of the property market, allowing individuals to make informed decisions regarding their investments.
Let's delve into the latest update from Rightmove and explore what it reveals about the pulse of the property market.
The current state of the property market
This month sees a nominal decrease in the average listing price for properties, dipping £21 to £375,110 (a 0.0% change), as the market experiences the usual seasonal steadiness after peaking in May. Regional price movements vary across Great Britain, with notable increases primarily in the more affordable, northern regions, where five out of the six most budget-friendly areas hit record highs.
In contrast, the East of England and London report the only reductions in price this period. Following the announcement of a general election, Rightmove's comprehensive market data indicates a stable continuation of 2024's real estate activities. Transaction agreements and buyer enquiries are consistently robust, signalling a general willingness to proceed with property transactions. Nevertheless, a hesitancy driven by electoral uncertainty is evident among a segment of potential sellers, particularly those in the luxury market segment, who are momentarily holding off on their selling decisions to monitor the election's impact.
Factors influencing the property market
In the past month, there has been a steady state in the agreement of sales between purchasers and vendors, standing 6% higher compared to the same timeframe last year. This underscores a persistent willingness among market participants to proceed with their transactions, undeterred by the unexpected announcement of the general election. Similarly, the appetite among potential buyers, gauged by enquiries to estate agents for properties on sale, has maintained its pace, showing a 5% increase from the previous year.
Notwithstanding this stability, a sector showing signs of the election's ripple effects is the influx of new sellers, especially at the market's higher end. The fortnight just passed has seen a modest 1% rise in new sellers entering the market compared to the year prior. This is a deceleration from the preceding two weeks, where there was a healthier 6% year-over-year increase, illustrating a slight retreat in seller enthusiasm following the election's call. This cautious stance is most pronounced among premium properties, including five-bedroom homes and four-bedroom detached houses, where there has been a 3% dip in new listings over the last two weeks compared to an 11% rise before the election announcement.
The elections evolving campaign has increasingly brought housing into the limelight, thanks to a series of manifesto commitments revealed lately. It's positive to witness housing gaining prominence, though many pledges are either extensions of current initiatives, reintroductions of past policies, or proposals benefitting only niche market segments. More critical to the wider pool of prospective homeowners is the anticipation surrounding the Bank of England's interest rate decisions. Mortgage rates remain high, with the average five-year fixed rate currently positioned at 5.04%, a slight improvement from July 2023's peak of 6.11%, yet above the year's outset figure of 4.94%.
As we stepped into 2024, many had harboured expectations for a notable reduction in mortgage rates by mid-year. Should the Bank of England's base rate reduction translate to more favourable mortgage terms, its impact is poised to surpass that of specific housing strategies aired thus far in reaching and revitalising the broader market.
Practical advice for navigating the property market
Embarking on the property market journey, whether as a buyer or seller, can indeed feel daunting. However, armed with the right strategies and insights, it becomes an exciting venture. Our advice is to immerse yourself in understanding the trends and peculiarities of your local market. Each area has its unique rhythm and knowing this can significantly enhance your decision-making process.
Engaging with a well-respected estate agent is another smart move. They bring a wealth of experience and can guide you through the maze of buying or selling, ensuring you clinch the best deal possible. Equally, keeping a close eye on trusted sources, like Rightmove's House Price Index, can empower you with up-to-the-minute market intelligence, enabling you to make decisions that are not only informed but also timely. By adopting these approaches, you place yourself in a strong position to successfully navigate the ebbs and flows of the property market with confidence and insight.
The smart move
For an understanding of the local property market trends and peculiarities, contact Nick or Teresa at Quarters Residential Estate Agents, Wokingham on 0118 466 0292 (call or WhatsApp) or e-mail [email protected] – we’re here to help!
